Notice No.   20120419-4   Notice Date   19 Apr 2012
Category   Compliance   Segment   SME
Subject   Eligibility norms for Listing on BSE SME Exchange


BSE Ltd.                            
DATE: 19-04-2012
To: All Trading Members of the BSE Ltd.
SUBJECT: Eligibility norms for Listing on BSE SME Exchange
Reference: Letter No. OW/WRD/DSA/30653/2011 dated 27-09-2011 of SEBI
Vide above reference, SEBI had granted the approval to Bombay Stock Exchange Ltd. for setting up the ‘SME Exchange /Platform”. We have already launched the BSE SME Exchange on 13-03-2012. In addition to the various Guidelines issued by SEBI from time-to-time, the BSE SME Exchange has stipulated the following eligibility Norms for Listing on SME Exchange / Platform and migration norms from BSE SME to main board of BSE.
1.       Net Tangible assets of at least Rs. 1 crore as per the latest audited financial results
2.       Net worth (excluding revaluation reserves) of at least Rs. 1 crore as per the latest audited financial results
3.       Track record of distributable profits in terms of sec. 205 of Companies Act, 1956 for at least two years out of immediately preceding three financial years and each financial year has to be a period of at least 12 months. Extraordinary income will not be considered for the purpose of calculating distributable profits. Other wise, the networth shall be at least Rs 3 Crores.
4.      Other Requirements
·         The post-issue paid up capital of the company shall be at least Rs. 1 crores
·         The company shall mandatorily facilitate trading in demat securities and enter into an agreement with both the depositories.
·         Companies shall mandatorily have a website
5.      Certificate from the applicant company / promoting companies stating the following –
    1. The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).
Note: Cases where company is out of BIFR are allowed.
    1. There is no winding up petition against the company that has been accepted by a court.
6.      Listing Process will also involve:
For listing on BSE SME platform promoters will mandatorily be required to attend an interview with the Listing Advisory Committee
7.      Migration from BSE SME Exchange to the main Board of BSE:
·         The companies seeking migration to Main Board of BSE should satisfy the eligibility criteria as specified in 26(1) of SEBI (ICDR) Regulations, 2009 either at the time of initial listing on SME platform or at the time of seeking migration to Main Board. However, same will not be applicable where the company had sought listing on SME platform by following the process and requirements prescribed in 26(2) (a) of SEBI (ICDR) Regulations, 2009.
In case of any clarification on the subject matter of the Notice, please contact:
Mr. Ajay Thakur on 022-2272 8291 ( )
Ms. Soyal Gupta on 022-2272 8893 ( )
Ajay Thakur
BSE SME Exchange